Ulta Beauty (ULTA) Rating Lowered to Strong Sell at ValuEngine

ValuEngine lowered shares of Ulta Beauty (NASDAQ:ULTA) from a sell rating to a strong sell rating in a research note published on Monday morning.

A number of other equities analysts have also recently issued reports on the company. Atlantic Securities initiated coverage on Ulta Beauty in a report on Tuesday, June 19th. They issued an overweight rating and a $303.00 price objective for the company. Goldman Sachs Group lowered Ulta Beauty from a buy rating to a neutral rating and boosted their target price for the company from $241.00 to $272.00 in a research note on Tuesday, June 5th. BidaskClub lowered Ulta Beauty from a buy rating to a hold rating in a research note on Saturday, June 2nd. Credit Suisse Group boosted their target price on Ulta Beauty from $235.00 to $250.00 and gave the company an outperform rating in a research note on Friday, June 1st. Finally, BMO Capital Markets boosted their target price on Ulta Beauty from $220.00 to $230.00 and gave the company a market perform rating in a research note on Friday, June 1st. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the stock. The stock currently has an average rating of Buy and a consensus price target of $264.96.

Ulta Beauty opened at $237.86 on Monday, according to Marketbeat. Ulta Beauty has a 12-month low of $187.96 and a 12-month high of $278.94. The stock has a market capitalization of $14.16 billion, a PE ratio of 26.41, a PEG ratio of 1.17 and a beta of 0.68.

Ulta Beauty (NASDAQ:ULTA) last posted its quarterly earnings data on Thursday, May 31st. The specialty retailer reported $2.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.48 by $0.22. Ulta Beauty had a return on equity of 32.15% and a net margin of 9.67%. The firm had revenue of $1.54 billion during the quarter, compared to analysts’ expectations of $1.52 billion. During the same period in the prior year, the business earned $1.91 EPS. The company’s revenue for the quarter was up 17.4% compared to the same quarter last year. research analysts anticipate that Ulta Beauty will post 10.84 earnings per share for the current fiscal year.

Ulta Beauty declared that its board has approved a share repurchase plan on Thursday, March 15th that allows the company to buyback $625.00 million in shares. This buyback authorization allows the specialty retailer to reacquire shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

In other Ulta Beauty news, CFO Scott M. Settersten sold 7,032 shares of the company’s stock in a transaction that occurred on Tuesday, June 5th. The stock was sold at an average price of $253.09, for a total transaction of $1,779,728.88. Following the completion of the transaction, the chief financial officer now owns 9,380 shares of the company’s stock, valued at approximately $2,373,984.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Dennis K. Eck sold 3,500 shares of the company’s stock in a transaction that occurred on Friday, June 22nd. The shares were sold at an average price of $251.53, for a total value of $880,355.00. Following the transaction, the director now directly owns 380,294 shares of the company’s stock, valued at approximately $95,655,349.82. The disclosure for this sale can be found here. Insiders have sold a total of 105,432 shares of company stock valued at $25,661,967 in the last ninety days. 5.60% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. HS Management Partners LLC raised its position in shares of Ulta Beauty by 208.7% in the 4th quarter. HS Management Partners LLC now owns 699,365 shares of the specialty retailer’s stock worth $156,420,000 after acquiring an additional 472,850 shares in the last quarter. Millennium Management LLC raised its position in shares of Ulta Beauty by 1,094.2% in the 4th quarter. Millennium Management LLC now owns 362,115 shares of the specialty retailer’s stock worth $80,991,000 after acquiring an additional 331,792 shares in the last quarter. TIAA CREF Investment Management LLC raised its position in shares of Ulta Beauty by 111.3% in the 4th quarter. TIAA CREF Investment Management LLC now owns 591,905 shares of the specialty retailer’s stock worth $132,385,000 after acquiring an additional 311,725 shares in the last quarter. Two Creeks Capital Management LP bought a new position in shares of Ulta Beauty in the 4th quarter worth approximately $64,358,000. Finally, TCW Group Inc. raised its position in shares of Ulta Beauty by 238.4% in the 1st quarter. TCW Group Inc. now owns 360,872 shares of the specialty retailer’s stock worth $73,715,000 after acquiring an additional 254,246 shares in the last quarter. 90.10% of the stock is owned by institutional investors and hedge funds.

Ulta Beauty Company Profile

Ulta Beauty, Inc operates as a beauty retailer in the United States. The company's stores offer cosmetics, fragrances, haircare and skincare products, bath and body products, and salon styling tools; salon services, including hair, skin, and brow services; and others, including nail products and accessories.

To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Ulta Beauty (NASDAQ:ULTA)

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